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                                  EXHIBIT 10.14
                                    AGREEMENT
                                     BETWEEN
                                   F&M BANCORP
                        FARMERS & MECHANICS NATIONAL BANK
                                       AND

                            -------------------------

         AGREEMENT, dated as of the 18th day of August 1998, between F&M
Bancorp, a Maryland corporation, Farmers & Mechanics National Bank, a national
bank (together or separately hereinafter referred to as the "Employers") and
_____________________ (the "Executive").

                                   WITNESSETH:

         WHEREAS, the Executive is presently an executive officer of the
Employers; and

         WHEREAS, the Employers desire to be ensured of the Executive's
continued active participation in the business of the Employers; and

         WHEREAS, in order to induce the Executive to remain in the employ of
the Employers and in consideration of the Executive's agreeing to remain in the
employ of the Employers, the parties desire to specify the severance benefits
which shall be due the Executive in the event that the Executive's employment
with the Employers is terminated under specified circumstances detailed herein:

         NOW THEREFORE, in consideration of the premises and the mutual
agreements herein contained, the parties hereby agree as follows:

         1. DEFINITIONS. The following words and terms shall have the meanings
set forth below for the purposes of this Agreement:

         (a) Average Annual Compensation. The Executive's "Average Annual
Compensation" for purposes of this Agreement shall be deemed to mean the average
level of compensation paid to the Executive by the Employers or any subsidiary
thereof during the three consecutive calendar years preceding the Date of
Termination which yield the highest such average. If the Executive has worked
for less than three consecutive calendar years, the "Average Annual
Compensation" shall mean the sum of total compensation received, divided by the
number of months worked, and multiplied by 12. Alternatively, at the Executive's
election, the Executive's compensation for the 12 calendar months prior to the
Change-In-Control may be used to constitute "Average Annual Compensation."
Compensation shall include base salary and bonuses under the Incentive
Compensation Program originally adopted in 1996 and any other employee benefit
plans of the Employers. Compensation shall not include fringe benefits such as
automobiles or other perquisites, but shall include any pre-tax reduction for
contributions to any tax qualified retirement plan, deferred compensation plan,
or flexible benefits plan.

         (b) Cause. Cause shall mean (i) the willful and continued failure by
the Executive to substantially perform the Executive's duties with the Employers
(other than any such failure resulting from the Executive's incapacity due to
physical or mental illness) after a written demand for substantial performance
is delivered to the Executive by the Board of Directors of F&M Bancorp, which
demand specifically identifies the manner in which the Board of Directors of F&M
Bancorp believes that the Executive has not substantially performed the
Executive's duties or (ii) the engaging by the Executive in conduct which is
demonstrably and materially injurious to the Employers or their subsidiaries,
monetarily or otherwise. For purposes of clauses (i) and (ii) of this
definition, no act, or failure to act, on the Executive's part shall be 



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deemed "willful" unless done, or omitted to be done, by the Executive not in
good faith and without reasonable belief that the Executive's act, or failure to
act, was in the best interest of the Employers.

         (c) Change-in-Control of the Employers. Change-in-Control shall be
deemed to have occurred if the event set forth in any one of the following
paragraphs shall have occurred relative to either or both of the Employers:

      (i)   any Person is or becomes the Beneficial Owner, directly or
            indirectly, of securities of the Employers (not including in the
            securities beneficially owned by such Person any securities acquired
            directly from the Employers or their Affiliates) representing 25% or
            more of the combined voting power of the Employers' then outstanding
            securities, excluding any Person who becomes such a Beneficial Owner
            in connection with a transaction described in clause (A) of
            paragraph (iii) below; or
      (ii)  the following individuals cease for any reason to constitute a
            majority of the number of directors then serving on the Board;
            individuals who, on the date hereof, constitute the Board and any
            new director (other than a director whose initial assumption of
            office is in connection with an actual or threatened election
            contest, including but not limited to a consent solicitation,
            relating to the election of directors of the Employers) whose
            appointment or election by the Board or nomination for election by
            the Employers' shareholders was approved or recommended by a vote of
            at least two-thirds (2/3) of the directors then still in office who
            either were directors on the date hereof or whose appointment,
            election or nomination for election was previously so approved or
            recommended; or
      (iii) there is consummated a merger or consolidation of the Employers or
            any direct or indirect subsidiary of the Employers with any other
            corporation, other than (A) a merger or consolidation which would
            result in the voting securities of the Employers outstanding
            immediately prior to such merger or consolidation continuing to
            represent (either by remaining outstanding or by being converted
            into voting securities of the surviving entity or any parent
            thereof), in combination with the ownership of any trustee or other
            fiduciary holding securities under an employee benefit plan of the
            Employers or any subsidiary of the Employers, at least 60% of the
            combined voting power of the securities of the Employers or such
            surviving entity or any parent thereof outstanding immediately after
            such merger or consolidation, or (B) a merger or consolidation
            effected to implement a recapitalization of the Employers (or
            similar transaction) in which no Person is or becomes the Beneficial
            Owner, directly or indirectly, of securities of the Employers (not
            including in the securities Beneficially Owned by such Person any
            securities acquired directly from the Employers or their Affiliates)
            representing 25% or more of the combined voting power of the
            Employers' then outstanding securities.
      (iv)  the shareholders of the Employers approve a plan of complete
            liquidation or dissolution of the Employers or there is consummated
            an agreement for the sale or disposition by the Employers of all or
            substantially all of the Employers' assets, other than a sale or
            disposition by the Employers of all or substantially all of the
            Employers' assets to an entity, at least 60% of the combined voting
            power of the voting securities of which are owned by shareholders of
            the Employers in substantially the same proportions as their
            ownership of the Employers immediately prior to such sale;
      (v)   the Employers ceases to own, directly or indirectly, securities of
            any subsidiary representing 50% or more of the combined voting power
            of the subsidiary's then outstanding securities; or
      (vi)  there is consummated an agreement for the sale or disposition by the
            Employers of all or substantially all of a subsidiary's assets,
            other than a sale or disposition by the Employers of all or
            substantially all of the subsidiary's assets to an entity, at least
            60% of the combined voting power of the voting securities of which
            are owned by shareholders of the Employers in substantially the same
            proportions as their ownership of the subsidiary immediately prior
            to such sale; provided however, that such a sale or disposition
            should only be effective for those Executives, if any, employed by
            the subsidiary whose assets are so sold or otherwise disposed of,
            and not all participating Executives.
            "Affiliate" shall have the meaning set forth in Rule 12b-2
            promulgated under Section 12 of the Exchange Act.


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            "Beneficial Owner" shall have the meaning set forth in Rule 13d-3
            under the Exchange Act.
            "Board" shall mean the boards of directors of either or both of the
            Employers as applicable.
            "Exchange Act" shall mean the Securities Exchange Act of 1934, as
            amended from time to time.
            "Person" shall have the meaning given in Section 3(a)(9) of the
            Exchange Act, as modified and used in Sections 13(d) and 14(d)
            thereof, except that such term shall not include (i) the Employers
            or any of their subsidiaries, (ii) a trustee or other fiduciary
            holding securities under an employee benefit plan of the Employers
            or any of their Affiliates, (iii) an underwriter temporarily holding
            securities pursuant to an offering of such securities, or (iv) a
            corporation owned, directly or indirectly, by the shareholders of
            the Employers in substantially the same proportions as their
            ownership of stock of the Employers.

         A "Potential Change-in-Control" shall be deemed to have occurred if the
event set forth in any one of the following paragraphs shall have occurred:

      (i)   the Employers enter into an agreement, the consummation of which
            would result in the occurrence of a Change-in-Control;
      (ii)  the Employers or any Person publicly announces an intention to take
            or to consider taking actions which, if consummated, would
            constitute a Change-in-Control;
      (iii) any Person becomes the Beneficial Owner, directly or indirectly, of
            securities of the Employers representing 15% or more of either the
            then outstanding shares of common stock of the Employers or the
            combined voting power of the Employers' then outstanding securities
            (not including in the securities beneficially owned by such Person
            any securities acquired directly from the Employers or their
            affiliates); or
      (iv)  the Board adopts a resolution to the effect that a Potential
            Change-in-Control has occurred.

         (d) CODE. Code shall mean the Internal Revenue Code of 1986, as
amended.

         (e) DATE OF TERMINATION. "Date of Termination" shall mean:

                  (i) if the Executive's employment is terminated for Cause or
for Disability, the date specified in the Notice of Termination, and (ii) if the
Executive's employment is terminated for any other reason, the date on which a
Notice of Termination is given or as specified in such Notice.

         (f) DISABILITY. Termination by the Employers of the Executive's
employment based on "Disability" shall mean termination because of any physical
or mental impairment which qualifies the Executive for disability benefits under
the applicable long-term disability plan maintained by the Employers or, if no
such plan applies, which would qualify the Executive for disability benefits
under the Federal Social Security System.

         (g) GOOD REASON. Termination by the Executive of the Executive's
employment for "Good Reason" shall mean termination by the Executive based on:

                  (i) without the Executive's express written consent, the
assignment by the Employers to the Executive of any duties which are materially
inconsistent with the Executive's positions, duties, responsibilities and status
with the Employers immediately prior to a Change-in-Control of the Employers, or
a material change in the Executive's reporting responsibilities, titles or
offices as an employee and as in effect immediately prior to such a
Change-in-Control, or any removal of the Executive from or any failure to
re-elect or re-appoint the Executive to any of such responsibilities, titles or
offices, except in connection with the termination of the Executive's employment
for Cause, Disability or Retirement or as a result of the Executive's death or
by the Executive other than for Good Reason, or assignment by the Employers to
the Executive of duties which cannot effectively be performed at the Bank's
principal office at Frederick County, Maryland, (ii) without the Executive's
express written consent, a reduction by the Employers in the Executive's
compensation as in effect on the date of the Change-in-Control of the Employers
or as the same may be increased from time to time thereafter, (iii) without the
Executive's express written consent, a failure by the Employers to provide the
Executive with the same fringe benefits that were provided to the Executive
immediately prior to a Change-in-Control of the Employers, or with a package of
fringe benefits (including paid vacations) that, though one or more of such
benefits may vary from those in effect immediately prior to such
Change-in-Control, is substantially comparable in all material respects to such
fringe benefits taken as a whole, (iv) any purported termination of the
Executive's employment for Cause, Disability or Retirement which is not effected
pursuant to a Notice of Termination satisfying the requirements of 


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paragraph (i) below; or (v) the failure by the Employers to obtain the
assumption of and agreement to perform this Agreement by any successor as
contemplated in Section 6 hereof.

         (h) IRS. IRS shall mean the Internal Revenue Service.

         (i) NOTICE OF TERMINATION. Any purported termination by the Employers
for Cause, Disability or Retirement or by the Executive for Good Reason shall be
communicated by written "Notice of Termination" to the other party hereto. For
purposes of this Agreement, a "Notice of Termination" shall mean a notice which:

                  (i) indicates the specific termination provision in this
Agreement relied upon, (ii) sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of Executive's
employment under the provision so indicated, (iii) specifies a Date of
Termination, which shall be not less than thirty (30) nor more than ninety (90)
days after such Notice of Termination is given, except in the case of the
Employers' termination of Executive's employment for Cause, and (iv) is given in
the manner specified in Section 7 hereof.

         2. BENEFITS UPON TERMINATION. If the Executive's employment by the
Employers shall be terminated subsequent to a Change-in-Control or Potential
Change-In-Control of the Employers (i) by the Employers other than for Cause,
Disability, or as a result of the Executive's death, or (ii) by the Executive
for Good Reason, then the Employers shall, subject to the provisions of Section
3 hereof, if applicable, pay to the Executive, in a lump sum within five (5)
business days following the Date of Termination, a cash amount equal to the sum
of 3.0 times the Executive's Average Annual Compensation plus the cash value of
the Executive's unused vacation calculated by multiplying the number of unused
hours by the Executive's hourly compensation expressed as a fraction the
numerator of which is the Executive's Average Annual Compensation and the
denominator of which is 2080, plus a pro-rata bonus for the year of termination
based on the amount of the prior year's bonus multiplied by the fraction of the
year concluded between January 1 and the Date of Termination.

         3.  EXCISE TAX PAYMENT PROVISION

      A.    1. Whether or not the Executive becomes entitled to payments under
            this Agreement, if any of the payments or benefits received or to be
            received by the Executive in connection with a Change-in-Control or
            the Executive's termination of employment (whether pursuant to the
            terms of this Agreement or any other plan, arrangement or agreement
            with the Employers, any Person whose actions result in a
            Change-in-Control or any Person affiliated with the Employers or
            such Person) (such payments or benefits, excluding the Excise Tax
            Payment, being hereinafter referred to as the "Total Payments") will
            be subject to any excise tax imposed under Section 4999 of the Code
            (the "Excise Tax"), the Employers shall pay to the Executive an
            additional amount (the "Excise Tax Payment") equal to the Excise Tax
            imposed.

            2. For purposes of determining whether any of the Total Payments
            will be subject to the Excise Tax and the amount of such Excise Tax,
            (i) all of the Total Payments shall be treated as "parachute
            payments" (within the meaning of section 280G(b)(2) of the Code)
            unless, in the opinion of tax counsel ("Tax Counsel") reasonably
            acceptable to the Executive and selected by the accounting firm
            which was, immediately prior to the Change-in-Control, the
            Employers' independent auditor (the "Auditor"), such payments or
            benefits (in whole or in part) do not constitute parachute payments,
            including by reason of section 280G(b)(4)(A) of the Code, (ii) all
            "excess parachute payments" within the meaning of section 280G(b)(1)
            of the Code shall be treated as subject to the Excise Tax unless, in
            the opinion of Tax Counsel, such excess parachute payments (in whole
            or in part) represent reasonable compensation for services actually
            rendered (within the meaning of section 280G(b)(4)(B) of the Code)
            in excess of the Base Amount (within the meaning of Section
            280G(b)(3) of the Code) allocable to such reasonable compensation,
            or are otherwise not subject to the Excise Tax, and (iii) the value
            of any noncash benefits or any deferred payment or benefit shall be
            determined by the Auditor in accordance with the principles of
            sections 280G(d)(3) and (4) of the Code.

            3. In the event that the Excise Tax is finally determined to be less
            than the amount taken into account 


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            hereunder in calculating the Excise Tax Payment, the Executive shall
            repay to the Employers, within five (5) business days following the
            time that the amount of such reduction in the Excise Tax is finally
            determined, the portion of the Excise Tax Payment attributable to
            such reduction. In the event that the Excise Tax is determined to
            exceed the amount taken into account hereunder in calculating the
            Excise Tax Payment (including by reason of any payment the existence
            or amount of which cannot be determined at the time of the Excise
            Tax Payment), the Employers shall make an additional Excise Tax
            Payment in respect of such excess (plus any interest, penalties or
            additions payable by the Executive with respect to such excess)
            within five (5) business days following the time that the amount of
            such excess is finally determined. The Executive and the Employers
            shall each reasonably cooperate with the other in connection with
            any administrative or judicial proceedings concerning the existence
            or amount of liability for Excise Tax with respect to the Total
            Payments.

      B.    The payments provided in Section 3A. shall be made not later than
            the fifth (5th) day following the Date of Termination; PROVIDED,
            HOWEVER, that if the amounts of such payments cannot be finally
            determined on or before such day, the Employers shall pay to the
            Executive on such day an estimate of the minimum amount of such
            payments to which the Executive is clearly entitled and shall pay
            the remainder of such payments (together with interest on the unpaid
            remainder (or on all such payments to the extent the Employers fails
            to make such payments when due) at 120% of the rate provided in
            section 1274(b)(2)(B) of the Code) as soon as the amount thereof can
            be determined but in no event later than the thirtieth (30th) day
            after the Date of Termination. In the event that the amount of the
            estimated payments exceeds the amount subsequently determined to
            have been due, such excess shall constitute a loan by the Employers
            to the Executive, payable on the fifth (5th) business day after
            demand by the Employers (together with interest at 120% of the rate
            provided in section 1274(b)(2)(B) of the Code.) At the time that
            payments are made under this Agreement, the Employers shall provide
            the Executive with a written statement setting forth the manner in
            which such payments were calculated and the basis for such
            calculations including, without limitation, any opinions or other
            advice the Employers has received from Tax Counsel, the Auditor or
            other advisors or consultants (and any such opinions or advice which
            are in writing shall be attached to the statement).

         4.  MITIGATION; EXCLUSIVITY OF BENEFITS.

         (a) The Executive shall not be required to mitigate the amount of any
benefits hereunder by seeking other employment or otherwise, nor shall the
amount of any such benefits be reduced by any compensation earned by the
Executive as a result of employment by another employer after the Date of
Termination or otherwise.

         (b) The specific arrangements referred to herein are not intended to
exclude any other benefits which may be available to the Executive upon a
termination of employment with the Employers pursuant to employee benefit plans
of the Employers or otherwise.

         5. WITHHOLDING. All payments required to be made by the Employers
hereunder to the Executive shall be subject to the withholding of such amounts,
if any, relating to tax and other payroll deductions as the Employers may
reasonably determine should be withheld pursuant to any applicable law or
regulation.

         6. ASSIGNABILITY. The Employers may assign this Agreement and their
rights hereunder in whole, but not in part, to any corporation, bank or other
entity with or into which the Employers may hereafter merge or consolidate or to
which the Employers may transfer all or substantially all of their assets, if in
any such case said corporation, bank or other entity shall by operation of law
or expressly in writing assume all obligations of the Employers hereunder as
fully as if it had been originally made a party hereto, but may not otherwise
assign this Agreement or their rights hereunder. The Executive may not assign or
transfer this Agreement or any rights or obligations hereunder.

         7. NOTICE. For the purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by certified or
registered mail, return receipt requested, postage prepaid, addressed to the
respective addresses set forth below:

<PAGE>

                  To the Employers: F&M Bancorp
                                    Attn:  Faye E. Cannon, President
                                    P.O. Box 518
                                    Frederick, Maryland 21705

                  To the Executive: 

                                    -----------------------------

                                    -----------------------------

                                    -----------------------------

         8. AMENDMENT; WAIVER. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing signed by the Executive and such officer or officers as may be
specifically designated by the Boards of Directors of the Employers to sign on
their behalf. No waiver by any party hereto at any time of any breach by any
other party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.

         9. GOVERNING LAW. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of
Maryland.

         10. NATURE OF EMPLOYMENT AND OBLIGATIONS.

         (a) Nothing contained herein shall be deemed to create other than a
terminable at will employment relationship between the Employers and the
Executive, and the Employers may, subject to such other arrangements as may
exist between the Employers and the Executive, terminate the Executive's
employment at any time, subject to providing any payments specified herein in
accordance with the terms hereof.

         (b) Nothing contained herein shall create or require the Employers to
create a trust of any kind to fund any benefits which may be payable hereunder,
and to the extent that the Executive acquires a right to receive benefits from
the Employers hereunder, such right shall be no greater than the right of any
unsecured general creditor of the Employers.

         (c) The obligations of the Employers under the terms of this Agreement
shall be enforceable by the Executive on the basis of the respective Employers'
joint and severable liability.

         11. TERM OF AGREEMENT. This Agreement shall terminate three (3) years
after the date first above written; provided that on or prior to the first
anniversary of the date first above written and each anniversary thereafter, the
Boards of Directors of the Employers shall consider (with appropriate corporate
documentation thereof, and after taking into account all relevant factors,
including Executive's performance as an employee) renewal of the term of this
Agreement for an additional one (1) year, and the term of this Agreement shall
be so extended unless the Boards of Directors of Employers do not approve such
renewal and provide written notice to the Executive, or the Executive gives
written notice to the Employers, thirty (30) days prior to the date of any such
anniversary, or such party's or parties' election not to extend the term beyond
their then scheduled expiration date; and provided further that, notwithstanding
the foregoing to the contrary, this Agreement shall be automatically extended
for an additional one (1) year upon a Change-in-Control of the Employers.

         12. HEADINGS. The section headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

         13. VALIDITY. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provisions of this Agreement, which shall remain in full force and effect.

         14. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.


<PAGE>

         15. REGULATORY PROHIBITION. Notwithstanding any other provision of this
Agreement to the contrary, the obligations of the Employers and the Executive
hereunder shall be suspended or limited, as the case may be, in the event that
the FDIC prohibits or limits, by regulation or order, any payment hereunder
pursuant to Section 18(k) of the FDIA (12 U.S.C. Section 1828(k)).

         IN WITNESS WHEREOF, this Agreement has been executed as of the date
first above written.

Attest:                                     F&M BANCORP


--------------------------             By: 
                                           ------------------------------------
                                           Faye E. Cannon, President
                                           and Chief Executive Officer


Attest:                                    FARMERS & MECHANICS
                                           NATIONAL BANK


--------------------------             By: 
                                           ------------------------------------
                                           Faye E. Cannon, President
                                           and Chief Executive Officer


--------------------------             ----------------------------------------
Witness                                Executive



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                                  SCHEDULE I TO

                                   F&M BANCORP

                      CHANGE IN CONROL EMPLOYMENT AGREEMENT

         The following persons participate in the F&M Bancorp Change in Control
Employment Agreement.

GORDON M. COOLEY
Karen L. Korrell
David L. Spilman
Alice E. Stonebreaker